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tv   Stossel  FOX Business  June 29, 2014 12:00am-1:01am EDT

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your plans and feedback. go enjoy your weekend. from all of us me. see you tomorrow. john: very powerful house republicans coming out against the reauthorization of the export import. >> something weird and remarkable is happening in washington. more politicians are taking a clear stand against corporate welfare. and yes, some of us do. >> it is wrong for the government to choose winners and send your money to corporations. >> that is what the export and import it does. but the new majority leader said this week. >> this needs to be reauthorized. >> every other developed nation
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in the world has an authority. >> that is the way the system works. >> and that is our show tonight. ♪ ♪ >> now it is time for john stossel. john: capitals have let entrepreneurs raise money so they can get their products and services to more people. free competition poses the best idea in the best and cheapest products and services are split fine wine. that's why capitalism is great. and then there is crony capitalism, "crapitalism", where they give your money to capitalists. i call a corporal welfare or
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"crapitalism" they give out grants and so does the energy department. we know about giving out gifts. the biggest government supporter is the export import tank. and here's what they had said about it. >> enabling exporters of all sizes to increase their sales, protecting and exporting with confidence. >> that sounds good, who can object to that? the chairman of the house finance committee. deadheads doing. congressman, why? >> wide ledge at? john: yes. >> i think it's pretty clear. you have a pretty clever term. it's corporate welfare at the end of the day. the one who has received a
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financial benefit with fortune 500 company in who could easily finance the things themselves. and so you have the ex-im bank thing they create jobs, but we just heard testimony that when these banks help boeing to sell a jet, it hurts delta airlines. thousands of pilots that they can't help. we've also heard from my state of texas that the bank helped, for example, ge and others to build an oil refinery in turkey and it hurts the domestic refining industry. for every job they create, they kill an american job domestically. so it's not helping a. >> but what people can see, what you are up against, you can see
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the job created at boeing. and they have a concentrated interest in lobbying. maybe the guys, you have this example. the smaller companies don't know what's happening to them. >> i think i know what the challenges are ahead of me. anybody like this has now gotten a contract to lobby in favor of this. but it's just not fair. and i know a lot of people haven't heard of it, but i have a small business in my district run by a guy. and yet it's my taxpayer money being spent in places like china and russia in places where there are human rights abuses? >> let's respond to what the bank says here. >> with the export import bank, the u.s. exporters can turn
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possibilities into realities. international building systems of texas makes prefabricated houses and their buyers range from the slums of nigeria to the desert of algeria and letters are wary of spending loans because of the countries involved. >> so they felt reassured. isn't that wonderful? >> what we hear is that lenders know it is the taxpayer's money that's on the line and then they quit doing due diligence. and last i looked, the national debt is $17 trillion and increasing. we will keep it going in our committee and i don't think the taxpayer once was on its balance
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sheet. and it's all about kind of the washington insider economy versus the mainstream competitive economy. i mean, the base is going to be some small business in my state. but the true beneficiaries are fortune 500 companies that can easily finance this themselves and instead they are financing a lobby effort to keep this thing going. and you can't even say that they create new jobs. and we just had testimony from congressional budget office that if xm was using main street accounting, and gas accounting, will be called fair value accounting, they are losing money for the taxpayer. it's not right and it's not fair. we should end corporate welfare to get you my friend say the only way we can help is with subsidies. john: and what about the republican friends as well? macro credibly a number of
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votes. we are helping them to inform their discretion in their knowledge at the moment. but we have the highest corporate tax rate of any industrialized nation in the world area if we want a level playing field, let's bring down the worker tax rate. john: thank you, congressman. i agree with you. only free enterprise is moral. so let's hear now from the other side, brad sherman is also in the finance committee, congressman, you just listen to your committee chair. >> i know that you oppose reauthorizing this bank. two people on one side, one on the other. in the argument for extending this is more than twice as good. so it is a fair price. the fact is that we don't live in the novels of ann grande.
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there is no ex-im bank in those books. also, germany doesn't have this, japan doesn't have the, china doesn't have one, and neither do south korea. what we are talking about here is unilateral military disarmament. i see a lot of them accused of this, and this is the first time that republicans are so anxious to engage in it. but we don't promote exports, buyers are smart and they will not necessarily go for the best products but for the best financing. john: so if others are jumping off a bridge, we should as well? is in this what our parents warned us against reign. >> germany hasn't ex-im bank three times as large as ours. three times as large as ours.
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and their economy is doing much better than ours is. their manufacturing is making more than ours, and they are not running the huge trade deficit. johansson will talk about the national debt that he keeps the clock running on. he wants to cut taxes, and then he wants to get rid of the ex-im bank, because it makes money for the taxpayer and returns the money for the treasury. >> fannie and freddie made money. >> the difference there is that you have a fair reserve calculated and they say this is the way to get job hunter and
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jobs. >> subsidizing all kinds of people. >> i think the ex-im bank should get a bit bigger. and ultimately what we need to do is make it a negotiating point to shrink there is an ours simultaneously. so the only way you get disarmament is if you get the ability to go into this with arms. you don't sing kumbaya.
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not even george mcgovern proposed. and i don't think you should propose a woman comes through the efforts of foreign government. >> maybe we can get rid of theirs and the ex-im bank. >> we are in negotiations now to downscale and illuminate the export authorities of this type. and it will be difficult negotiations. but if we throw away before we go into this negotiations, you can guarantee that. john: what about the side effects? you do give it a special break a man that hurts americans.
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>> that cost about a thousand jobs. >> so when delta is deciding to get away from those aircraft, they look for so how are we going to be able to sell our planes abroad if even delta airlines is looking for export finances? >> they don't tell you that. >> we live in an imperfect world. >> what do you think? keep the bank? fox business, john stossel.
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and coming up, the cronies explained why the bank is so great. >> banks. we have all made a big mistake. >> that is the way the system
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when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.
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that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator.
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the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. >> eidetic, the loans are actually subsidies for big corporations. >> that is right. when it comes to picking winners and losers, who has more experience? john: it is a government, of course. and the group that made the cartoon is at best that it steals opportunities for myung younger people like them. picking winners is something that many americans want their elected politicians to do. someone needs to decide which industries deserve american
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support. so we can analyze every company to decide which is were they. that is why we elect politicians. so what is wrong with this logic? was asked the economist who congressman pence shilling says he sometimes quotes. so i have a life, i can't decide what companies are better and should get some export support. >> it is the free market's job. the direction of resources is determined without consumers spend their money and competitions work it all out. they do it much better and they do it with a lot less favoritism. >> but the politicians, both of them saying look at how all of these people have been helped. >> because without costing jobs over here, you're taking money
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from over here and it's easy to see that. >> these people pretend the lawsuit doesn't exist. john: and what you don't see the money taken. >> that's right come you have some american firms that are not able to expand. you can point to those. >> they will lose the business to this european company which subsidizes even more. >> other american firms gain business and the resources will be allocated and it will direct how the resources the expense.
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>> the cartoon video points out that the bank has been going on for 80 years. >> is giving a helping hand out for some great american companies. >> no vote could mean fewer contributions to the next election campaign to i had not thought of that. >> that is a big part, that those companies give money to the politicians who supported. >> yes, it is crony capitalism. john: "crapitalism" is my word. >> i like that word. >> paying foreigners to consumer products. >> it creates jobs and housing cost america a penny.
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>> we should find it using better accounting methods. john: but they get to use this phony accounting method. >> yes, that is true. >> other companies subsidize exports. but they probably say, if other kids jump off the bridge, would you do? they heard those economies. and it is inflicting wound on ourselves. >> as you mention, willingness have the money by far. write down the list is ge.
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>> the u.s. government can really go out there and support u.s. companies as they support american workers. >> at the end of that, your imagination at work. >> way that the politicians in washington choose. that's not a good thing to imagine. >> they don't each have a lobbyist making the case. >> that is right, they don't, but boeing doesn't he does. >> they believe in us. they say this is my job, to support american people.
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>> i don't doubt that it's good for their jobs. >> next, coming up. corruption at the ex-im bank. show me the carfax®
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john: taxpayers should not have flown $140 billion to politically connected companies. it's just wrong. government is lousy at picking winners and losers, but free market does it much better. more important than efficiency, it is immoral. government has no business taking your money and giving it to certain companies. the ex-im bank should be killed certainly because it's wrong in principle. however, this week they gave politicians another reason.
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"the wall street journal" reports that bank officials are being looked into for taking bribes and kick ax. it often happens when government agency ends out big money. reporting on that, we have cam. start with the latest washington examiner column. saying that there is a petri dish of corruption and graft. >> i don't think that they are full of a bunch of white collar criminal is. but i think it is the nature of the bank when you provide government power and private property. and you are you're asking for corruption to happen. >> in this case, a bank employee took cash to help a florida company get alone to send construction equipment to latin america. >> we also have three other unnamed officials for things like taking gifts from companies
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who are getting subsidies. we know in one case they gave plane rides to officials with where they went ahead and got a subsidy from the export import bank. >> so you say it's not just the bank, but they did take a survey of the employees in 2013. so what about leaders maintain standards of integrity. 42% disagree, 29% agree. >> we end up in a situation where a bunch of people are handing out money. every player gets the subsidy. only less than 2% get a subsidy. so you're going to get questions about honesty and integrity and there will be such an opportunity for kickback. john: one congressman about
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kabul is william jackson. what did he do? >> he was william jefferson, he was caught with $90,000 in his fridge. he had a 13 year sentence on bribery charges. one of the things he did was demand bribes from a nigerian company and from u.s. company and he brought them together as part of what they were paying them for. so when that deal fell apart, he found another company and product together again taking bribes at the ex-im bank. >> they got to the bank. because they were indicted for taking this bribe, and she worked at the bank. >> yes, that's right. there was a bank official. she just got wired $100,000. the nigerian businessmen said this is a facilitation payment for helping us get money.
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john: but yesterday the congresswoman carolyn mccarthy said some corruption is no surprise. >> they did the investigation and they let him go. that is the way the system works. anybody who understands any business, there are always going to be people who will try to break the system. >> that's the way the system works when you have the government involved and bureaucrats providing profits to private players. sometimes you need a certain standard and you get the tax break. but those don't provide the opportunity for corruption at the export import bank. politicians and bureaucrats are picking winners and losers deciding who gets a subsidy and who doesn't. john: fannie and freddie provide the opportunity as well.
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an executive was fired for taking kick ax and you wrote about that. >> yes, in 2013, an executive was let go in there was a criminal scheme were some of the middlemen who got involved it was another one of these situations where there is a government owned business was playing with other people's money and once you're doing that, you are handing out someone else's money and you're putting the person in position to demand this bribe. >> every time the bank is reauthorized, there is the promise of reforms. we're going to stop giving all of our money to the 10 big businesses order to stop with manufacturers and they never really successfully follow
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through and it doesn't do what they want. if you want to get rid of the corruption in the opportunity for the kick ax committee only way to do it is to justify it until the export import bank. john: i hope that they do.
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when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.
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he is one of the few corporate executives want to speak against the bank. all that delta lobbied orient. and this should come as no surprise. this is a principle of concentrated and if it's versus diverse costs. and it pays to spend money to lobby, but it might when you are a multimillion dollar loan. but when you pay for the, may be a few hundred dollars, it's not worth it. hence we get the lobbyist industrial complex in government hands out money. that will create an industry of those devoted to grabbing the money in one of those people is john hardy. employment through expert. it's a great sounding name. you are number five on this list of lobbyist between or blogger
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company and bankers. and so why is this a good thing, what you do? you are a pierside feeding off the taxpayer. >> these are companies that are facing severe competition overseas areas it levels the playing field. >> you have export credit agencies from all of the major companies with which we compete. the only way in which we can lower the financing plainfield is by enabling the xm to provide comfortable financing so that the buyer can focus on the quality. >> the buyers pay for the financing that is available.
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>> more recently returned to the treasury. >> since 2006 the bank has returned this. >> my federal flood insurance made money until they didn't know they are $20 billion in the red. >> it is conservatively managed. it is point to 3%, less than one or 1%. >> the private sector, after the financial crisis is now in a situation that is subject to new regulatory constraints and they simply don't have the liquidity and what liquidity they have is far more expensive. because they now have additional capital reserve to provide and at the same time we are in a situation where these markets
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are exploding and we have elion's of new people moving into the middle class and there are tremendous opportunities there. >> with a private bank, i would think they would fund it. boeing has 4 billion and its finance. >> one of the dilemmas is a tie on liquidity and low in return. so the bottom line is that commercial banks will not be effectively investing is not a have to make more of a return to their shareholders. >> this regulation meant to protect us, we have to suggest more companies? >> we are not subsidizing. they are operating consistently with this arrangement. >> the one agreement with the other agencies are now working
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under to provide is established conditions. >> the one argued against it, that is delta airlines. here's more with the ceo said yesterday. >> i have had many conversations with the ceos of the most profitable airlines in the world. and they tell me, look, i really don't need the financing, but it's so cheap, i might as well take it. this is effectively a free airplane. all i want is a level playing field. john: he's taking with a level playing field. >> we are not subsidizing the competition. the reality is that there is a new international agreement on aircraft, which is made for financing, it's made it a better credit airline. far more extensive. and the reality is that it is now less expensive to get it
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financed through the private sector than it is to users. but there's one problem that i mentioned before. there is no liquidity because the commercial banks are not prepared to invest the magnitude of capital. and we are talking about widebodied aircraft. >> i'm glad you raised this issue. there is always another party on the other side of the table. they have export credit agencies. they are very aggressive and more aggressive. john: if they throw money off a cliff, we should throw money off a cliff. >> but are we in a position where you actually want this to actually sell aircraft? john: they say that they will
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keep going. >> it's not just about them, but the whole spectrum of top-tier manufacturers in the united states trying to compete in market places all over the world in major export credit agencies without government, so that is my opinion. john: thank you so much. so the lobbying odds are stacked. there are a few free-market groups that lobby back and punish politicians that support this. we will talk about that coming up next. ♪
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john: not every lobbying group lobbies to get them for themselves. but if you just believe in something. one of them defends economic freedom. they oppose all special favors to business and all mail outs.
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and later the obamacare backs his opponent who eventually became a senator. >> we know that it is important. the club supporting marco rubio, and now they are fighting the ex-im bank. barney keller works for the club. and i admit that i have been a fan of you guys for a long time. i've attended them of your meetings. so might this really be a turning point when republicans stop feeding at the top and say enough already? >> you know, it's a little known agency that has become the
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symbol for crony capitalism in america. i think that people are turning to realize that there's a difference between being pro-business and pro-free market. those two things are not always the same and we have seen this in the debate. on one side you have the chamber of commerce for crony capitalists that has supported the stimulus and "the wall street journal." >> they also do some good things >> yes, but they also support big government programs a lot of times. and on the other side you have the pro-free-market side that believes that this leads to wealth prosperity for all americans. and that's why we have to stop things like this, the export import bank. john: exxon mobil got funded after paying for a trip for some employees. >> yes, it's just another example what everyone hates about washington. people with well-connected lobbyist, they can go there and hire someone like that and they can get a loan or a subsidy from
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the government that isn't available to you and me. >> government workers ran of $97,000 traveling in the south pacific. eleven months later they approved 3 billion in financing. the biggest gift loan in the agency's 75 years. >> yes, ebony% goes to boeing, they are the company that is lobbying most to keep the bank. that's what is wrong with washington. that's why americans, part of why they don't trust politicians anymore. >> one more example that you can talk about. it's harder to see the jobs lost. it hurt iron ore miners in america. >> basically would have been if they wanted to send money at
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them into the richest woman in ostrow the. so they provided these loan guarantees a $700 million. exactly. and these miners are saying, where's my hand out, now you're making it one competitor with us. so why are we the ones -- one of the ones getting the subsidies. >> so they don't have lobbyists. >> they don't have good one's. john: thank you so much. barney keller. we appreciate you being here. coming up next, why i think this is a remarkable turning point. more politicians realize there's a difference between capitalism and "crapitalism." ♪
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john: the ex-im bank is one of several bureaucracies they give you money to favor business. sometimes we hear about it. when the money is squandered. sometimes we hear that the energy department lost $500 million on slender. but we hear little about the other losses like the triad ethanol plant, and so on, the list is long. and then we tune out and people get scandal fatigue. but even when there isn't a
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scandal, government has no business handing out loan guarantees to companies. it's just wrong. corporations should pay their own way. the ever caught her department gives $200 million to the pet food institute, the wind institute, in return, politicians get campaign contributions. it's disgusting. even a small business in an ration is an embarrassment and they loaned a million dollars to a dealership that them close and 3 million tulip rolex dealer. and this is where your tax money should go? but the name small business administration, it just sounds -- the government says the situation existed protect the interests of small business. how can i argue about? does america need a small business policy and an export
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policy and so on? well, no, we are to have one, it's called the market. it's great at determining which exports are worthy and which are not. those that attract customers and work and make a profit and the mason for themselves. some of us need not be involved, especially in this sense. there is a bureaucracy called the economic development association that gives out 3 million a year. spending your money on so much economic development that they even pay for things like a wine tasting room and a gift shop. really. one fiscally conservative congressman came on the show a few years ago to complain. >> the economic development takes about $400 million a year from you, the taxpayer, bring the money to washington dc. and it is part of economic
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development. >> they are political animals. john: they are, and they shouldn't exist. the congressman said that he try to kill it, but he failed, he didn't even come close. and check out this other politician who promised that he put it into both them and the epa. >> i don't believe we should defend every government program just because it's there. there are some that don't work like the ex-im bank that has been a little bit more than a fund for corporate welfare. john: now, instead of getting rid of it, the president wants the bank to loan out even more of your money. give me a break. once they get to washington and breathe and all the money and power, politicians love spending other people's money. except maybe, just maybe, the tea party changed things.
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if they do kill the export import bank and then stop other corporate welfare, it's a first step to saving america. that is her show and we will see you next week afternoon.eek you guys free to ride around in a pedicab? think washington's ever going to get a handle on government waste? listen to this. >> are there programs that the government does that are a waste of money? or aren't working as well as they should be? of course, but i will tell you if you work in any company in america, big company, you know, you will find some things that they are doing that are not all that eefficient either. >> one big difference, mr. president. companies waste their own money, and the government wastes everyone's. so will this number ever go down if d.c. doesn't know the difference? hi, i'm brenda


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